Statsguru: Gaps in funding space despite India's growing startup ecosystem

India's space-tech ecosystem is expanding rapidly, but funding remains a key challenge despite a surge in startup formation

Prime Minister Narendra Modi recently met the chief executives and founders of 20 Indian space startups in New Delhi to discuss transforming India into a global hub for  technology in this sector. Nineteen space tech startup and firms were set up in 2019; this figure rose to 45 in 2024. Fourteen such firms were set up in the first seven months of 2026. Despite this increase, India’s share in global funding for space tech companies remains small, ranging between 0.2 per cent and 3.6 per cent. India ranks second worldwide in the number of space tech firms (11 per cent), yet stands far behind at tenth in funding. Firm-level data shows that 64 per cent remain unfunded, 15 per cent are at the seed stage, and only 7 per cent have raised capital. Sectoral distribution highlights that four out of 10 Indian space tech firms focus on support engineering. Among the top five firms by revenue, profitability margins ranged from 5 per cent to 27 per cent between FY20 and FY25. Government-funded public companies such as NewSpace India recorded the highest profit share versus revenue in FY25.